The Senate and House of Representatives met in regular session this week debating bills on the calendar and debating bills in subcommittee and committee.
There are seven weeks left in the second year of the 2025 – 2026 legislative session. Election filing for the SC House of Representatives and all state constitutional offices is open, and will close March 30.
H3858, a bill that decreases the tax on boats by 50% in the state, and deletes the requirement that outboard motors be titled separately from hulls, was passed by the Senate and House and ratified. The bill is now on the governor’s desk for his signature or veto.
S227, the concurrency bill, remains on the Senate’s contested calendar until the bill sponsor, Sen. Tom Davis (R-Beaufort), and stakeholders work on amendments to the bill.
Transportation bills approved by House subcommittee
S831, the Senate version of the SC Department of Transportation modernization bill, passed the Senate and was amended and given a favorable report by the House Ways and Means Revenue Policy subcommittee. The amendment mirrors the language in H5071, the House version of the bill. The subcommittee also gave a favorable report to H5071, which was amended to do the following:
- Strikes the Coordinating Council for Transportation and Mobility.
- Removes at-large members from the SCDOT Commission.
- Clarifies that municipalities that accept roads from SCDOT's inventory may impose an additional millage to meet the funding requirements of maintaining the roads.
- Requires all members of a county transportation committee to reside in the county.
- Subjects officials or employees of a county transportation committee to the State Ethics Act.
- Makes it a felony for anyone working with a county transportation committee to take or ask for money, jobs, favors or anything of value in exchange for influencing their decisions.
Both bills, which will now advance to the full House Ways and Means Committee, include language — at the request of the Municipal Association of SC — that prohibits a county council from serving as the county transportation committee.
For questions about both versions of the SCDOT modernization bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
Property tax cut bills update
S768, an increase in the property tax homestead exemption to $150,000 for South Carolina resident homeowners 65 years old and older, was passed by the Senate and sent to the House for debate. This bill includes a local government reimbursement with the increase in the exemption for local governments. The bill is currently in the House Ways and Means Committee.
H5006, a bill that exempts $10,000 from business personal property taxes for small businesses, unanimously passed the House of Representatives and is now in the Senate Finance Committee for consideration.
For questions about these tax bills, contact Webster Hall (whall@masc.sc) at 803.933.1232.
From the Dome to Your Home podcast
Don’t forget to listen to the From the Dome to Your Home podcast every Friday for a recap of the week’s legislative issues and a look to the week ahead at the State House.
House Judiciary Committee
H4764 – Local enforcement of immigration laws – favorable report
Summary of the bill as introduced: Requires law enforcement agencies operating correctional facilities to enter into written agreements with federal immigration enforcement agencies to participate in immigration programs that authorize law enforcement agencies to enforce federal immigration laws.
H4292 – Enacts the Roadway Protection and Safety Act – favorable report as amended. The amendment strikes language that would penalize someone from being in the wrong place at the wrong time. The amendment further reduces the penalty from a felony to a misdemeanor and removes mandatory minimum sentencing. It also clarifies the process when a vehicle is taken as a result of a street takeover.
Summary of the bill as introduced: Makes it illegal to participate in, organize, be a spectator, aider or abettor of a street takeover.
H3034 – Enacts Fargo's, Hyco's, Rico's, Coba's, Wick's and Mikka's Law – favorable report as amended. The amendment strikes a two-year minimum sentence and increases the maximum penalty from 10 to 15 years.
Summary of the bill as introduced: Expands the conduct, requires restitution and increases the penalties for a violation of the current law related to taunting, tormenting, injuring or killing police dogs or horses.
House Ways and Means Economic Development subcommittee
H4703 – Enacts the SC Special Purpose District Accountability and Transparency Act – adjourned debate
Summary of the bill as introduced: Requires all special purpose districts to submit annual budgets, financial reports and audits to the state auditor.
House Education and Public Works Committee
H4688 – Seat belt requirements for golf carts – favorable report
Summary of the bill as introduced: Exempts golf cart passengers under 12 years old from wearing safety belts while operating a golf cart owned by a golf course.
House Ways and Means Sales, Use and Income Tax subcommittee
H5093 – Gross proceeds of sales – favorable report
Summary of the bill as introduced: Excludes the amounts of gross proceeds of sales paid by state and local governments for the emergency services IP network.
House Judiciary AI, Cybersecurity and Special Laws subcommittee
H4679 – Enacts the South Carolina Drone Regulation and Public Safety Act – favorable report as amended. The amendment adds protections for agencies and local governments in the performance of duties.
Summary of the bill as introduced: Establishes guidelines for drone operations and penalties for unlawful drone use.
House Ways and Means Property Tax subcommittee
S439 – Manufacturing property tax exemption – favorable report
Summary of the bill as introduced: Increases the maximum reimbursement amount for the property tax exemption on certain manufacturing property.
S853 – Abandoned buildings tax credit clarification – favorable report
Summary of the bill as introduced: Clarifies that the existence of an incoming-producing use prior to the period of abandonment is not a requirement for eligibility.
Senate Finance Natural Resources and Economic Development subcommittee
H3876 – Accommodations taxes – carried over
Summary of the bill as introduced: Adds the position of accommodations intermediary to facilitate the rental of accommodations.
House Medical, Military, Public and Municipal Affairs Municipal and Public Affairs subcommittee
H4246 – Residential improvement districts – favorable report
Summary of the bill as introduced: Allows government entities to create certain districts that include a geographic area within the jurisdiction of another government entity.
Senate Judiciary subcommittee
H3731 – Special purpose district property – favorable report
Summary of the bill as introduced: Removes a sunset provision concerning the authority of special purpose districts to own, dispose, acquire, purchase, hold, use, lease, convey, sell, transfer or dispose of property.
House Agriculture, Natural Resources and Environmental Affairs Environmental Affairs subcommittee
H5111 – Public water system connections – favorable report as amended. The amendment clarifies that the wells installed are only for single family homes or agricultural properties of one-half acre or larger; requires backflow prevention devices; and contemplates if or when public water systems are incapable of providing service or are having defined water quality issues. The amendment also requires that customers still pay base rates and prohibits customers from disconnecting from the public water system if they also install a well.
Summary of the bill as introduced: Prohibits counties and municipalities from mandating connection to municipal water systems without a documented public health threat.